The components of the Political Environment are:
(A) The degree of politicisation of business and economic issues
(B) Dominant ideologies and values of major political parties
(C) The level of political morality
(D) Concern with quality of life
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B) and (C) only
(A) The degree of politicisation of business and economic issues — Correct. It shows how far business questions are turned into political ones, which affects the policies a firm will face.
(B) Dominant ideologies and values of major political parties — Correct. A party’s ideas decide how it will treat business if it comes to power.
(C) The level of political morality — Correct. Honest politics gives business stable and fair rules to work under.
(D) Concern with quality of life — Incorrect. This belongs to the social environment, which covers people’s values, lifestyles and concerns such as health and quality of life.
NCERT (2026-27 Edition):
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